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The effects of supply chain disruptions caused by the Great East Japan Earthquake on workers

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  • Kondo, Ayako

Abstract

The Great East Japan Earthquake affected not only local workers employed by establishments that were directly damaged, but also those of their trading partners through supply chain disruptions. I estimate the effect of such indirect shocks to workers on their job separation, inter-industry mobility, geographical relocation, and employment status in the following years. I find that such shocks increased job separation in the study period. This increased job separation did not increase inter-industry mobility, but rather induced relocation to other prefectures. The effect on employment status was mixed: although the self-reported indicator of being affected by the earthquake is significantly correlated with negative outcomes such as high unemployment, the proxy for the production decline at the prefecture-industry level is uncorrelated with employment status. This result implies that people who faced a negative employment shock may have attributed it to the exogenous event, which may cause substantial bias in the self-reported data on the effect of disasters.

Suggested Citation

  • Kondo, Ayako, 2018. "The effects of supply chain disruptions caused by the Great East Japan Earthquake on workers," Japan and the World Economy, Elsevier, vol. 47(C), pages 40-50.
    • Handle: RePEc:eee:japwor:v:47:y:2018:i:c:p:40-50
    DOI: 10.1016/j.japwor.2018.03.007
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    1. Vasco M Carvalho & Makoto Nirei & Yukiko U Saito & Alireza Tahbaz-Salehi, 0. "Supply Chain Disruptions: Evidence from the Great East Japan Earthquake," The Quarterly Journal of Economics, Oxford University Press, vol. 136(2), pages 1255-1321.
    2. Robert DEKLE & Eunpyo HONG & Wei XIE, 2016. "The Regional Spillover Effects of the Tohoku Earthquake," Discussion papers 16049, Research Institute of Economy, Trade and Industry (RIETI).
    3. Joji TOKUI & Kazuyasu KAWASAKI & Tsutomu MIYAGAWA, 2015. "The Economic Impact of Supply Chain Disruptions from the Great East Japan Earthquake," Discussion papers 15094, Research Institute of Economy, Trade and Industry (RIETI).
    4. Mitsuru OKIYAMA & Suminori TOKUNAGA & Yuko AKUNE, 2012. "A Multiplier Analysis of the Impact of a Negative Supply Shock Caused by the Great East Japan Earthquake and Subsequent Rebuilding Policies: Utilizing the two-regional SAM (Japanese)," Discussion Papers (Japanese) 12024, Research Institute of Economy, Trade and Industry (RIETI).
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    Cited by:

    1. Jun Nagayasu, 2020. "Economic Activities and Regional Correlation During Economic and Natural Disasters," DSSR Discussion Papers 117, Graduate School of Economics and Management, Tohoku University.
    2. Matthias Klumpp & Dominic Loske, 2021. "Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    3. João M. Lopes & Sofia Gomes & Lassana Mané, 2022. "Developing Knowledge of Supply Chain Resilience in Less-Developed Countries in the Pandemic Age," Logistics, MDPI, vol. 6(1), pages 1-19, January.

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